You are viewing 1 of your 1 free articles
The Guinness Partnership reveals progress on post-Grenfell sprinkler retrofits
The Guinness Partnership installed sprinklers in nine blocks during the past financial year, covering around 600 homes, as part of a pledge to retrofit fire protection systems in all its buildings taller than 18 metres.
The 66,000-home association kicked off a sprinkler retrofit programme in 2020 as part of post-Grenfell building safety measures. The landlord is also fitting sprinklers to all timber-frame buildings taller than 12 metres and to other blocks that house vulnerable residents.
Guinness’ latest annual report revealed it fitted sprinkler systems in nine buildings, which it said “enhanced the safety” of 600 homes. But it did not disclose where the blocks were or how much it spent.
However, the association’s accounts showed that capitalised group costs on existing properties jumped 64% to £60.9m in the year to the end of March 2022. It also started installing evacuation alert systems in eight buildings, which are due to be completed by next March.
“The safety of our homes and residents remains our top priority,” Guinness said in its accounts.
READ MORE
In its previous financial year, Guinness said it fitted sprinklers in 13 high-rise blocks. When the accounts were published a year ago, it said nine projects were in progress and a further 14 were planned for the 2021-22 financial year.
In 2020, the government updated guidance to ensure all new blocks taller than 11 metres are fitted with sprinklers. Under the previous regime, sprinklers were required in buildings taller than 30 metres.
Social housing landlords have been spending significant sums of money on building safety measures since the Grenfell Tower fire in 2017.
On Wednesday, Clarion, the UK’s biggest housing association, reported it invested £40m – its highest annual sum – on fire safety work in its last financial year, bringing its overall spend since 2017 to £117m.
In its accounts, Guinness revealed it secured £26m in funding from the government’s Building Safety Fund in February to fix a leaseholder block in London that has high-pressure laminate (HPL). Work is due to begin in the “near future”, the association said.
Eight other cladding remediation projects are due to start in the year ahead, it added.
Elsewhere in its accounts, Guinness reported that its post-tax surplus fell 36% to £44.6m in its most recent full year. But the figure was skewed against the previous year, which saw the landlord gain £94m in surplus from a 2,500-home stock swap with Paradigm.
Guinness’ turnover in the latest year rose 5% to £388.2m.
In its core social housing lettings division, revenue rose to £336.6m, producing an operating surplus of £82.3m. The division accounted for 85% of total turnover. The operating margin was broadly the same as last year at 24.5%.
“We have maintained our operating margin despite a challenging external environment and rising cost inflation, particularly in labour and materials costs, which form a large part of our expenditure,” Guinness said.
Like many of its peers, the association’s development plans were also hit by labour and supply chain issues. It completed 410 homes, less than half its target of 835 and nearly a fifth down on the previous year.
Guinness said it completed 1,616 homes since April 2018 and still has an overall target to build 5,500 new properties by March 2025.
The landlord’s total loan and debt facilities were broadly flat at £2.26bn at the year end, with £1.42bn of the borrowings drawn.
Sign up for our fire safety newsletter
Already have an account? Click here to manage your newsletters
